geothermal

Representatives of the Costa Rican government and utility concerns are scheduled to meet today with their Japanese counterparts to ink a $550 million loan deal to finance the construction of three geothermal plants.

According to published reports, Japan International Cooperation Agency (JICA) President Akihiko Tanaka will meet with Costa Rican President Luis Guillermo Solís to formally bless the agreement.

The projects – Pailas II and Borinquen I and II – will be located in the northwestern province of Guanacaste near the Rincón de la Vieja Volcano National Park. Once completed, they are each expected to generate about 55 MW of geothermal electricity.

The Japanese loan will cover 75 percent of the project’s total costs, estimated at some $900 million. The remainder will be covered by Costa Rican Electricy Institute and a $70 million loan from the European Investment Bank.

The Japanese loan has a 40-year term with a 10-year grace period at 0.6 percent interest.